People generally save in order to buy a house, the luxuries they need, children’s education, children’s marriages and so on. Not many people actually save for their retirement even though it is important. This is definitely a blunder and people should be more open to adopting the new pension scheme in order to ensure that they will have financial stability and security by the time they reach old age.
The basic objective of the new pension scheme is to give people the guarantee that by the time they reach retirement age and are void of a regular source of income, the scheme would allow them to keep their self-esteem intact and maintain a good standard of living. Keeping in mind the rising cost of living, life expectancy and inflation, it becomes necessary to have a solid pension scheme so that one can enjoy the benefits offered by it.
When it comes to the task of opting for a new pension scheme, there are plenty of options to choose from. Needless to say, it is necessary to consider each option carefully before making the final decision. The very first option here would be the state retirement pension. This is a very basic pension one, in order to draw benefits from it you will need to ensure that you are making regular contributions during your working period.
You can also use an add-on pension plan for your basic one in order to enjoy even more benefits. Of course, extra contributions are required for this plan but it is a worthwhile choice if one doesn’t have any other type of pension plan, such as an occupational one or a personal one.
If you are looking for a flexible pension plan then you can opt for the stakeholder pension plan. Here, you don’t need to pay regularly and can even have an unconditional break from making monthly contributions if required. It can be restarted as per your desire and there are no penalty or legal charges levied for the break!